ICICI Bank Dropped Over 6% As Loan Probe Widens

On Monday intraday, it was noticed that the ICICI Bank has dropped over 6 percent. This was when the report suggested that the CBI will soon call Chairman of Videocon, Venugopal Dhoot and chief executive officer of ICICI Bank, Chanda Kochhar for the examination in the loan transaction case.

Apart from this, the bank is also penalized by RBI for selling stipulated debt securities in violation of regulatory directions. So, this is also among the reason for the drop of 6 %. On BSE, the stock reacted to all these cues and slumped 6.59 per cent to Rs 260.05. It is also expected that CBI will expand its investigation into the bank’s consortium. The bank consortium had many private banks as its member. According to analysts, the CBI inquiry itself is a long-drawn process and creates uncertainty on the stock price.

Besides ICICI, analysts informed that the Videocon Group is charged to have pumped money into NuPower Renewables in return for the loan sanctioned. NuPower Renewables is a firm that is owned by the husband of Chanda Kochhar, Deepak Kochhar. However, the Chairman of Videocon Group, Venugopal Dhoot has mentioned that he is well aware of all the 12 members of the panel. He also declared that they have cleared the loan amount. He also went on saying that personal ties between two people do not always result in criminal acts.

On the other hand, the lender, as well as its CEO, has denied any wrongdoing on its part. The bank stated that there is no conflict of interest. Also, Videocon is not an investor in NuPower.

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